Ukraine's banking sector shouldn't be judged by how many banks it has, but by how many are actually equipped to finance micro, small, and medium-sized enterprises (MSMEs), says Konstantyn Zhukovskyi, founder of fintech-infrastructure Activitis.

Writing for Economic Pravda, Zhukovskyi noted that Ukraine has around 60 credit institutions — far fewer than Germany (over 1,000), Poland (over 500), or Austria (nearly 400). But he argued that the number of banks matters less than their willingness to serve MSMEs, which he called the backbone of Ukraine's economy.

"MSMEs make up over 90% of businesses worldwide and provide more than half of all jobs," Zhukovskyi said, citing World Bank data. In Ukraine, he added, the sector accounts for more than six million jobs — meaning roughly every second working Ukrainian is tied to it in some way.

According to Zhukovskyi, MSMEs have shown particular resilience during the full-scale war, relocating production, moving teams, and finding new markets. Yet he pointed out that this same segment struggles most to access financing — a paradox he says stems not from a lack of liquidity, but from the financial sector's failure to manage MSME risk effectively.

"Many businesses don't fail because they lack customers or orders — they fail because of cash flow gaps," he said, describing how a 60- to 90-day payment delay that's a minor inconvenience for a large company can shut down a small one entirely.

Konstantyn Zhukovskyi  credited the National Bank of Ukraine with strengthening the financial system's stability throughout the war, but argued the next priority should be making MSME financing as accessible as retail lending. He pointed to tools like factoring, embedded finance and new scoring models as already reshaping the market, with regulatory support accelerating the shift.

Looking ahead, Zhukovskyi said Ukraine's postwar recovery will depend not just on rebuilding infrastructure, but on new economic growth driven by entrepreneurs. He suggested the country may need an entirely new type of financial institution — one combining a banking license with MSME expertise, modern scoring, and embedded finance — rather than simply more traditional banks.